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Tom Lee, the managing partner at Fundstrat Global Advisors, has added another prediction to his notable Bitcoin (BTC) forecasts. Lee believes that the largest cryptocurrency could reach six-figure levels before the 2024 block reward halving.
Lee Expects Bitcoin to Reach the Range of $140,000 to $180,000 by April 2024
Lee believes that the approval of a spot Bitcoin exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC) could ignite a rally that would end with a price between $140,000 and $180,000 before the block reward halving in April 2024. The realization of this prediction by the famous figure would correspond to a rise of 380% to 520% for Bitcoin based on current prices.
Lee’s prediction is based on the thesis put forward by Sean Farrell, the head of cryptocurrency strategy at Fundstrat Global Advisors, that the approval of a spot Bitcoin ETF would increase daily demand for Bitcoin by five times. Currently, the Bitcoin market is balanced with a daily block reward of $25 million and a daily demand of $25 million. Farrell predicts that the approval of a spot Bitcoin ETF would result in an additional daily demand of $100 million, resulting in a total daily demand of $125 million compared to the current daily supply of $25 million.
Based on Farrell’s prediction, a price calculation reveals that Bitcoin would reach a balance price between $140,000 and $180,000 before the April 2024 block reward halving.
“SEC Will Have to Give Green Light to a Spot Bitcoin ETF”
Commenting on the possibility of approving a spot Bitcoin ETF in the U.S., Lee also believes that the recent application by BlackRock, the world’s largest asset management company, for a spot Bitcoin ETF will pressure the SEC to make a positive decision, referring to the “BlackRock effect.”
According to the latest data, Bitcoin, the largest cryptocurrency, is currently trading at $29,491, representing a 1.02% increase in the last 24 hours.
